What is the solar tax credit?

The federal solar tax credit, also known as the investment tax credit (ITC), allows you to deduct 30 percent of the cost of installing a solar energy system from your federal taxes. It’s not a tax deduction, but a credit towards your tax due for the year. The ITC applies to both residential and commercial systems, and there is no cap on its value. Systems installed in 2019 still can claim the full 30% credit, and it will adjust down per the graphic over the next several years. There is still time to claim the full credit this year but you don’t want to wait much longer if you are considering making the move soon.